1. Accountants are responsible for preparing three most
important kinds of financial statements for a company.
The profits statement reports the profit-making actions
of the company and the bottom-line profit or loss for a
specified period. The balance sheets reports the
financial position of the business at a specific deadline,
ofteh the last date for the period. and the statement of
cash flows reports how much cash was generated from
profit what the business did with this money.
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2. Everyone knows profit is a good thing It is what our economy is founded
lying on It does not sound like a really large deal

3. Make more cash than you spend to sell or manufacture products But of
course nothing's ever really simple, is it? An income statement, or net profits
statement first identifies the business and the time period that's being
summarized within the report You interpret an profits report from the top
line to the bottom line

6. Each one step of the income statement reports the deduction of an
expenditure The income statement also reports modifications in assets and
liabilities also, in order that if there's a income increase, it's either because
there's been a rise in equity or even a drop off in a company's liabilities If
there's been an increase in the expense line, it's because there's been either a
reduce in equity or an increase in liabilities

7. Net worth can also be referred to as owners' equity in the corporation
They are not precisely interchangeable Net worth expresses the total of
assets less the liabilities

8. Owners' equity refers to who owns the assets after the liabilities are satisfied
These shifts in assets and liabilities are crucial for owners and executives of
a company because it's their responsibility to manage and manage such
adjustments Making a profit in a company involves several variable, not just
increasing the amount of cash that flows through a business, but management
of other assets as well

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